Carrier Global Corp · Q1 2022 earnings

Briefing

Reported first quarter results with organic sales up 10% and adjusted operating margin expansion of 110 basis points.

Carrier Global Corporation reported first quarter sales of $4.7 billion, a 1% decrease compared to the prior year, but organic sales grew 10%. GAAP EPS was $1.58 and adjusted EPS was $0.54. The company reaffirmed its full-year 2022 outlook for sales, adjusted operating margin, adjusted EPS and free cash flow.

• Net sales decreased by 1% versus 2021, driven by the Chubb divestiture, but organic sales increased by 10%.
• GAAP EPS was $1.58, and adjusted EPS was $0.54.
• Operating margin increased by over 2,500 basis points due to the gain on the sale of Chubb; adjusted operating margin expanded by 110 basis points.
• Net cash outflows from operating activities were $202 million, and free cash flow usage was $258 million.

Headline financials

Revenue & EPS history

Carrier reaffirmed the following outlook for 2022, excluding the pending Toshiba acquisition: ~$20B Sales, Organic* up HSDFX ~(1%), Acquisitions ~1%, Divestitures ~(10%), Adjusted Operating Margin *Up ~75 bps Y/Y, Adjusted EPS *$2.20 - $2.30, Free Cash Flow *~$1.65B Includes ~$200M in tax payments on Chubb gain.